Think and get richer

Think and get richer

Households that believe they control their own destiny are likely to be as much as $150,000 better off than those who ‘leave it to fate’, a new study has revealed.

The study by the Melbourne Institute at the University of Melbourne showed that households that believe they can shape their destiny amass additional savings in a four year period of over $150,000, compared with households who believe that fate will determine their future.

The study* examined the saving patterns of households together with their psychological profiles, and as a result found considerable variation in the levels of savings accumulated.

Professor Deborah Cobb-Clark, Director of the Melbourne Institute and co-author of the study said that households where a partner in the relationship believes strongly that they can shape their own destiny, and therefore should exhibit more self-control, save more both in terms of levels and as a percentage of their permanent incomes than do households where both partners believe that fate or luck drives their future.

Specifically, the research revealed that over a four-year period households with a strong sense of shaping one’s destiny are on average $150,000 better off and save 7.7 per cent more of their income.

* The research used panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a nationally representative household panel study